PROCESS The Brandes DNA 100 YEAR VISION Purpose

PROCESS

The Brandes DNA 100 -YEAR VISION Purpose § Help clients build wealth and pursue investment goals § Independence enables us to be client-centric and strong fiduciaries § Pursue alpha for competitive results over the long term $27. 0 billion total AUM* Total Inst. /Private Client Assets – $21. 7 B Endurance Total SMA Division Assets – $5. 3 B § Value approach has an evidence-based track record § Potentially undervalued securities require timeto pursue alpha § Must avoid fads and be different than benchmark to beatit �Headquarters: San Diego, CA � 317 employees Philosophy � 100% employee owned § Market is not efficient: human behavior distorts security prices § Fundamental analysis can help identify undervalued securities § Margin of safety: key to pursuing alpha and managingrisk Process Origin § Style purity and repeatable process for equity and fixed income § 3 -part global process: analysis, valuation and construction § Team work: separating analysis from decision-making Graham-and-Dodd value investing Active, fundamental analysis FOUNDED 1974 *AS OF MARCH 31, 2016 | Separately Managed Accounts (SMA) are offered through the firm’s SMA Division. The SMA Division encompasses the firm’s “Separately Managed Account” business (subadvisory “wrap-fee” business with brokerage firms). Non-SMA assets include institutional accounts, pooled investment vehicles, and high net worth accounts outside of SMA (“wrap-fee”) programs. Margin of safety: The margin of safety for any security is defined as the discount of its current market price to what we believe is the intrinsic value of that security. Alpha: A measure of performance on a risk-adjusted basis. It takes the volatility (price risk) of a mutual fund and compares its risk-adjusted performance to a benchmark index. The excess return of the fund relative to the return of the benchmark index is a fund's alpha. Source: Investopedia. com 2

How Brandes Works (3 Part Process) PORTFOLIO Construction Valuation Analysis § § AS OF MARCH 31, 2016 | 25 analysts 8 global sector teams Search for value Produce a research report that recommends a company valuation § 7 investment committees § Seasoned professionals § Value each business in conjunction with the analyst § Committees make investment decisions for an entire strategy § Aim to build portfolios with high margin of safety § Client portfolio management and trading implement portfolio decisions at the client level Margin of safety: The margin of safety for any security is defined as the discount of its market price to what the firm believes is the intrinsic value of that security. 3

Part 1: Analysis — Global Focus Experienced Analysts Cover the Globe 25 Research Analysts in 8 Sector Teams: 1. Basic Materials 2. Consumer Products 3. Financial Institutions 4. Healthcare 5. Industrials 6. Technology 7. Telecommunications 8. Utilities Cover Companies Across All Market Caps AS OF MARCH 31, 2016 4

Part 1: Analysis — Understanding a Business Companies Operate in Context Industry Factors § Threat of New Entrants § Threat of Substitutes § Buyer Power § Supplier Power § Rivalry Country Factors § Regulation § Politics § Fiscal Stability Fundamental, Company-Focused Macro Factors § Business Cycle § Currencies § Demographics 5

Part 1: Analysis — Disciplined Research Process Objective: Estimate a Company’s Value Identifying Undervalued Companies Typical Targets Focus on Underlying Business Value § Attractive valuation characteristics § Proven ability to generate free cash flow § Record of growing shareholder wealth § Sufficient financial history § Adequate liquidity § Bias for conservative capitalization structures Determining Value of the Business § Sustainable profits § Competitive advantage § Market position § Brand strength § Barriers to entry § Differentiated product or service § Downside risks § Governance issues § Regulatory/policy environment Intrinsic Values Assessed/Updated by Analysts *Intrinsic Value: The actual value of a company or an asset based on an underlying perception of its true value. 6

Part 1: Analysis — Fundamental Research Screening Metrics & Valuation Methods Vary by Sector Name Sector-Specific Examples 1. Basic Materials NAV of Commodity Reserves, P/B, P/E 2. Consumer Products P/E, Sales/Square Foot, P/FCF 3. Financial Institutions P/TBV, Deposit Premium, P/Pre Provision Income 4. Healthcare P/E, DCF, Book Value + Capitalized R&D 5. Industrials P/E, P/B, DCF 6. Technology P/FCF, DCF, P/E 7. Telecommunications P/FCF, DCF, P/E 8. Utilities P/B, P/E, EV/Regulatory Asset Base Adjustments to book value and normalization of earnings or cash flow vary by sector. Deposit Premium: valuing a bank as a percentage of (or at a premium to) its deposits. Discounted Cash Flow: discounting future cash flow using a discount rate/cost of capital to calculate its present value. Enterprise Value: a measure of a company’s total value. Net Asset Value of Reserves: the value of a company’s commodity assets less any associated liabilities. Price/Book: price per share divided by book value per share. Price/Earnings: price per share divided by earnings per share. Price/Cash Flow: price per share divided by cash flow per share. Price/Free Cash Flow: market capitalization divided by free cash flow. Price/Pre-Provision Income: price per share divided by the pre-provision income for financial institutions. Price to Tangible Book Value: Share price divided by tangible book value per share 7

Part 2: Valuation — Intrinsic Value Investment Committee (IC) Establishes Intrinsic Value Estimate Analyst/Investment Committee Interaction § IC formally meets weekly § IC establishes intrinsic value estimate for each company based on: § Analyst’s comprehensive report § Other publicly available information § Knowledge and experience § IC scrutiny process - analysis from multiple points of view: § Key drivers specific to company/industry § Risk factors § Cyclical vs. secular risks 8

Part 3: Construction — Portfolios Based on Margin of Safety § Portfolios typically hold 35 to 85 positions: depends on strategy and opportunity set § Allocations to individual securities primarily depend on margin of safety § Other allocation factors include: § Correlated risks § Liquidity § Diversification guidelines § Range of intrinsic value estimates Monitoring Portfolios § Investment Committees review weekly reports and large moves daily § Reports show current margin of safety and allocation for every holding based on latest share price 9

Part 3: Construction — Margin of Safety BUY This is a hypothetical illustration of value investing concepts. It does not represent the performance of any specific security. It assumes intrinsic value changes over time. Actual results will vary. No investment strategy can assure a profit or protect against loss. *Intrinsic value: “In general terms it is understood to be that value which is justified by the facts, e. g. , the assets, earnings, dividends, definite prospects, as distinct, let us say, from market quotations established by artificial manipulation or distorted by psychological excess”— Security Analysis, 1934, page 17. **The margin of safety for any security is defined as the discount of its market price to what the firm believes is the intrinsic value of that security. 10

Margin of Safety/Potential Return* Part 3: Construction — Allocation Factors MODERATE ALLOCATION HIGH ALLOCATION AGGRESSIVE ALLOCATION LOW / NO ALLOCATION MODERATE ALLOCATION HIGH ALLOCATION Other Factors PASS / SELL LOW / NO ALLOCATION Unfavorable MODERATE ALLOCATION Favorable Other Factors § § Correlated risks Liquidity Diversification guidelines Range of intrinsic value estimates** *The margin of safety for any security is defined as the discount of its market price to what the firm believes is the intrinsic value of that security. **Intrinsic value estimates can change over time. 11

Part 3: Construction — Equity Sell Discipline Investment Committee Decision § Full sale when a security’s price reaches estimate of intrinsic value § Full or partial sale may occur if our estimated intrinsic value declines, making the margin of safety unattractive § Partial or full sale may occur to free up cash for other securities with estimated higher margin of safety Average Annual Portfolio Turnover Typically = 20 - 40% Margin of safety: The margin of safety for any security is defined as the discount of its current market price to what we believe is the intrinsic value of that security. 12

Part 3: Construction — Assembling Portfolios Client Portfolio Managers § Implements Investment Committee decisions according to client investment policy statements/requirements: § Social restrictions § Country/industry prohibition § Cash limitations Strategic Trading § Integrated into decision making § 24 hour trading desk, access to liquidity through multiple global relationships § Ongoing communication with ICs on price and liquidity opportunities § Proactive on U. S. market-structure issues, with client benefits in mind § Focus on best execution: price, minimizing trading costs/market impact 13

Active, Fundamental Risk Management Organizational Level § Investment Oversight Committee: monitors exposures across multiple strategies § Conservative business management of the firm § Team approach § Co-investment Portfolio Level Security Level Screening Level § Seeks to find compelling areas and avoid expensive ones using global insights § Intrinsic value estimate* considers a spectrum of risks − Company-level risks − Business, balance sheet, corporate governance and regulatory risk − Macro-level risks − Sensitivity to economic or specific cycles and events − Foreign exchange § Margin of safety** is primary risk control − Further considerations − Correlation risk − Liquidity − Diversification − Intrinsic value estimates *Intrinsic value estimates can change over time. **The margin of safety for any security is defined as the discount of its market price to what the firm believes is the intrinsic value of that security. Diversification does not assure a profit or protect against loss in a declining market. 14

The Brandes Difference Purpose-Built to Find Value § Started as a value investor and maintains this focus 4 decades later 1 of 7 Global Equity Mandates with 40 -Year Track Record § Experience/judgment from decades of investing through market cycles § Enables us to look different Global Reach and Insight § In-depth research crossing: § Cap size § Sectors § Geographies 3 -Part Fundamental Process 1. Analysis 2. Valuation 3. Construction Risk Management Integrated into Process § Security analysis and valuation § Portfolio management § Business management Source: e. Vestment as of 3/31/15 (1 of 7 Global Equity Mandates with 40 -Year Track Record) 15

How Brandes Works (3 Part Process) PORTFOLIO Construction Valuation Analysis § § AS OF MARCH 31, 2016 | 25 analysts 8 global sector teams Search for value Produce a research report that recommends a company valuation § 7 investment committees § Seasoned professionals § Value each business in conjunction with the analyst § Committees make investment decisions for an entire strategy § Aim to build portfolios with high margin of safety § Client portfolio management and trading implement portfolio decisions at the client level Margin of safety: The margin of safety for any security is defined as the discount of its market price to what the firm believes is the intrinsic value of that security. 16

Disclosures This material is intended for informational purposes only. The information provided in this material should not be considered a recommendation to purchase or sell any particular security. It should not be assumed that any security transactions, holdings, or sectors discussed were or will be profitable, or that the investment recommendations or decisions we make in the future will be profitable or will equal the investment performance discussed herein. Portfolio holdings and allocations are subject to change at any time. Strategies discussed herein are subject to change at any time by the investment manager in its discretion due to market conditions or opportunities. Market conditions may impact performance. Brandes Investment Partners® is a registered trademark of Brandes Investment Partners, L. P. in the United States and Canada. The foregoing reflects the thoughts and opinions of Brandes Investment Partners® exclusively and is subject to change without notice. VALUE SPECIALISTS SINCE 1974 CALL 800. 237. 7119 BRANDES. COM 11988 El Camino Real, Suite 600 P. O. Box 919048 San Diego, California 92191 -9048 17